Piercing Line Gold Candle Pattern

Piercing Line Bullish XAUUSD Candle-stick Pattern Setups

A Piercing Line Gold Candle-stick Pattern and Dark Cloud Cover Candle-stick Pattern look alike but the difference is that one occurs at the top of a Gold up gold trend (Cloud Cover) and the other occurs at the bottom of a downwards gold trend (Piercing).

Upward Gold Trend Reversal - Dark Cloud Cover Candles

Downward Gold Trend Reversal - Piercing Line Candlesticks

Piercing Line Candlestick

Piercing line is a long black body followed by a long white body candlestick.

The white body pierces the midpoint of the prior black body.

This is a bullish reversal gold pattern setup that forms at the bottom of a market downwards xauusd trend. It shows that the xauusd market opens lower and closes above the midpoint of the black body.

This highlights that the momentum of the down gold trend is reducing and the xauusd market trend is likely to reverse and move in an upward direction.

This gold pattern is shown referred to as a piercing line signifying the xauusd market is piercing the bottoms showing a market floor for the xauusd price down ward trading trend.

Piercing Line Candlestick

Analysis Piercing Line Candle

A buy trading signal is confirmed once xauusd price closes above the neckline which is the opening of the candlestick on the left of the Piercing Line candle.

This is a bullish setup and xauusd price should continue moving upward and for one who puts a buy gold trade should also place a stop loss order just below the lowest xauusd price level.

Dark Cloud Cover Candlestick

Opposite of piercing candle.

This candle stick is a long white body followed by a long black body.

Black body pierces the midpoint of the prior white body.

This is a bearish reversal gold pattern that forms at the top of an upwards xauusd trend.

It shows that the xauusd market opens higher and closes below the midpoint of the white body.

This highlights that the momentum of the up gold trend is reducing and the xauusd market trend is likely to reverse & move in a downwards direction.

This gold pattern is shown known as a cloud cover signifying the cloud as a ceiling for the xauusd price upwards trend.

Dark Cloud Cover Candle

Analysis Dark Cloud Cover Candle

A sell signal is confirmed once xauusd price closes below neck-line which is the opening of the candlestick on the left of this candle.

This is a bearish setup and xauusd price should continue moving downwards and for one who puts a sell gold trade should also put a stop loss order just above highest xauusd price level.